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3 years ago

Does a business neceşsarily have obligations to anyone besides stockholders?

Business

1 answer:

Marina CMI [18]3 years ago

8 0

Answer:

of course. Business have obligations and duties towards many parties. we call these people "stake holders". in other words, they are either interested in the business and activities or are effected by the business activities.

for an example, the community and the environment the business operates in are stakeholders and the firm has responsibility to ensure an environmental friendly production and practices are carried out by the firm.

Government and tax authorities are another example. firm has to make sure that the required disclosures are made and proper taxes are paid timely.

Potential investors are another example, the company has to make sure that they disclose all the relevant and material information that may give signals about the companies future and its direction.

Explanation:

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An elderly father owns a classic car that was purchased many years ago for $7,500. The father dies and bequeaths the car to his

igor_vitrenko [27]

The available options are:

A. No capital gain or loss because the item sold was personal property

B. $2,500 long term capital gain

C. $12,500 long term capital gain

D. $22,500 long term capital gain

Answer:

$2,500 long term capital gain

Explanation:

Given that the classic car, that is an item under consideration is inherited, therefore, the cost basis to the recipient is the market value at the date of death.

Hence, the market value of the date of death is $20,000

The amount the classic car is sold is $22,500

To get the capital gain or loss, subtract the value at the date of death from the amount sold, which is $22,500 - $20,000 = $2,500

Hence, the correct answer is $2,500 long term capital gain

5 0

2 years ago

God will remain faithful only as long as man believes. True False

igor_vitrenko [27]

Answer:

true

Explanation:

5 0

3 years ago

The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:_____

mars1129 [50]

Answer:

The profit margin controllable by the Central Valley segment manager is: $ 95,000.

Explanation:

Only items directly controllable by the Manager should be included in the divisional financial performance measure.

Central Valley Division

Revenues $ 405,000

Less Variable Costs :

Variable operating expenses ($ 230,000)

Controllable Contribution $ 175,000

Less Controllable fixed expenses ($80,000)

Controllable Profit $ 95,000

3 0

2 years ago

According to the long-run Phillips Curve:

Oxana [17]

Answer:

c. fiscal and monetary policies that impact aggregate demand do not impact the natural rate of unemployment.

Explanation:

Short run Philips Curve is downward sloping, due to inverse relationship between unemployment rate & inflation rate. High economic activity implies more inflation rate, less unemployment. Low economic activity implies less inflation rate, more unemployment.

However, the inverse relationship between inflation & unemployment is only in short run & not in long run. In long run, this inflation - unemployment trade off doesn't exist. So, any fiscal or monetary policy affecting aggregate demand & consecutively inflation rate, do not affect the natural rate of unemployment (combination of frictional & structural unemployment rate) in long run.

7 0

3 years ago

(Learning Outcome 2) Watson Plumbing performed plumbing services for ABC Daycare on account for $565. How will this transaction

Strike441 [17]

Answer:

ABC Daycare

Effect of Performing Plumbing Services on account on the Accounting Equation:

Assets (Accounts receivable) will increase by $565 and Equity (Retained Earnings) will equally increase by $565

Explanation:

a) Data and Analysis:

Accounts receivable $565 Service Revenue $565

The accounting equation that equals assets to liabilities and equity is always true at all times and with every correctly posted transaction. It implies that assets are financed through the contributions made by either the owners (equity) or the creditors (debts), or a combination of the two. This equation forms the basis for the double-entry system of financial accounting.

7 0

2 years ago